Vitalik Buterin says ‘Ethereum is Good’ – Is a move beyond $2.9k likely now?

• Vitalik’s post on social media sparks optimism among ETH investors.
• Ethereum is set for major price rebound.

Ethereum [ETH] co-founder, Vitalik Buterin, recently responded to the mounting pressure from investors, traders, and influencers on social media.

Buterin on X affirmed how he had been urged to focus more on Ethereum’s bullish prospects rather than philosophical topics.

“I have been told that I need to “do less philosophizing and do more ethereum bullposting”. Hence, here is an ethereum bullpost, courtesy of stable diffusion 3 inpainting + gimp.”

Buterin’s post on X reading ‘Ethereum is Good’, was well-received, boosting optimism among those who were hesitant to invest due to the stagnation in ETH’s price over the past five months.

Despite other cryptocurrencies, including Bitcoin, reaching new all-time highs in 2024, Ethereum struggled to break its ATH.

Vitalik’s renewed involvement is expected to influence ETH’s price action, which has been on a downward trend since July 2024 when the daily candle closed at $3,440 price level.

Even though Ethereum rebounded slightly after the August 5th market crash, its price remains below the crucial $2,900 price level.

A breakout above this level could trigger a significant surge in ETH’s value, potentially reaching its 2024 highs.

Source: TradingView

Altcoins are set to explode

The broader altcoin market also shows promising signs. The total market cap of altcoins, excluding Bitcoin, recently bounced off a key support level, indicating potential growth.

Ethereum, as the leading altcoin, plays a crucial role in this market. The recent breakout in altcoin market cap and its rejection of previous resistance levels suggest a bullish trend could be on the horizon.

Source: TradingView

Vitalik Buterin’s tweet, coupled with these market signals, could mark a shift in sentiment, leading to a rise in ETH’s value.

Rise in whale activity and smart contracts

Whale activity on the Ethereum network has also increased. A significant whale has been moving large amounts of ETH to centralized exchanges (CEX) ahead of price drops.

In the past month, this whale moved 25,000 ETH ($73.9 million) to Kraken before two major price declines. Despite these movements, the whale still holds 41,639 ETH ($107 million), with an estimated total profit of $131 million.

Source: SpotOnChain

Moreover, Ethereum’s scarcity is becoming more apparent as the amount of ETH locked in smart contracts approaches 40%.

This development is bullish for Ethereum, as any increase in demand could lead to a sharp price rise.

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Considering all these factors, coupled with Vitalik Buterin’s positive tweet, Ethereum seems poised for long-term gains.

Source: Glassnode

However, for now, it might be wise to adopt a cautious approach, gradually accumulating ETH in anticipation of a potential upturn.